Reviewer

What interest remains constant throughout the investment term?

• simple

• compound

• annuity due

• ordinary annuity

Which of the following describes rate (r)?

• It is the amount of money borrowed or invested on the origin date.

• It is the amount paid or earned for the use of money.

• It is charged by the lender, or rate of increase of the investment

• It is computed on the principal and also on the accumulated past interests.

Which of the following statements is/are true?

• I only

• I and II

• II and III

• I and III

In the formula, I= Prt, what is r?

• revenue

• real value

• repaid

• rate of interest

Compound interest is favorable to the following except?

• investor of a retirement fund

• person who saves in bank

• investor of stocks

• borrower of a loan

If the investment amounting to ₱45,000 earned an interest of ₱3,500 how much will be the maturity value?

• ₱41,500

• ₱48,500

• ₱40,000

• ₱25,000

What is the frequency of conversion if the annual rate is compounded monthly?

• 2

• 3

• 4

• 12

If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?

• 3%

• 2.5%

• 1.25%

• 0.42%

Given that F = ₱50,000 and P = ₱35,000 how much is the compound interest?

• ₱15,000

• ₱25,000

• ₱35,000

• ₱45,000

Use the following values: F = 150,000, t = 6 years, r = 5% and n = 2. What is the present value?

• ₱100,353.83

• ₱111,533.38

• ₱123,153.83

• ₱132,531.38